Sollers College to Cancel $3.4 Million in Student Debt to Resolve Charges It Used Deceptive Ads to Lure Prospective Students into Illegal Contracts

Summary:

The Federal Trade Commission (FTC) and the state of New Jersey have taken action against Sollers College and its parent company, Sollers Inc., for making false claims about their job placement rates and relationships with prominent employers. The for-profit school is accused of using deceptive advertisements to attract students, including falsely claiming that many of the businesses featured on their website had partnerships with the school. Additionally, the school is alleged to have entered into 392 illegal income-share agreements with students, which broke the law by leaving out important borrower rights. The FTC has ordered the school to cancel $3.4 million in student debt and to cease collecting debts from students on these agreements. The school is also required to stop advertising false educational products or services and to provide written notification to consumers who are receiving debt forgiveness.